Bank of England / GfK NOP Inflation Attitudes Survey

Highlights from the survey

Question 1: Asked to give the current rate of inflation, respondents gave a median answer of 3.9%, compared with 3.6% in August.

Question 2a: Median expectations of the rate of inflation over the coming year were 3.9%, compared with 3.4% in August.

Question 2b*: Asked about expected inflation in the twelve months after that, respondents gave a median answer of 3.2%, compared with 2.9% in August.

Question 2c*: Asked about expectations of inflation in the longer term, say in five years time, respondents gave a median answer of 3.3%, compared with 3.2% in August.

Question 3:By a margin of 61% to 10%, survey respondents believed that the economy would end up weaker rather than stronger if prices started to rise faster, compared with 62% to 9% in August.

Question 4: 52% of respondents thought the inflation target was ‘about right’, compared with 54% in August, while the proportions saying the target was ‘too high’ or ‘too low’ were 20% and 16% respectively.

Question 5: 24% of respondents thought that interest rates had fallen over the past 12 months, the same proportion as in August, while 27% of respondents said that interest rates had risen over the past 12 months, compared with 29% in August.

Question 6: When asked about the future path of interest rates, 52% of respondents expected rates to rise over the next 12 months, compared with 48% in August. 4% of respondents expected interest rates to fall over the next 12 months, compared with 5% in August.

Question 7: Asked what would be ‘best for the economy’ – higher interest rates, lower rates or no change – 20% thought rates should ‘go up’, the same proportion as in August. 17% of respondents thought that interest rates should ‘go down’, also the same proportion as in August. 38% thought interest rates should ‘stay where they are’, compared with 39% in August.

Question 8: When asked what would be ‘best for you personally’, 25% of respondents said interest rates should ‘go up’ compared with 23% in August. 28% of respondents said it would be better for them if interest rates were to ‘go down’, compared with 27% in August.

Question 9-13: These questions are asked only once a year, in February.**
Question 14: Respondents were asked to assess the way the Bank of England is ‘doing its job to set interest rates to control inflation’. The net satisfaction balance – the proportion satisfied minus the proportion dissatisfied – was 22%, compared with 28% in August.

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